The rapid spread of economically priced city hotels in Bali is now spreading beyond locations in Denpasar, Badung and Gianyar and penetrating into traditional village areas, threatening the continued operation of traditional home stays operated by Balinese family-based businesses.
The rapid spread of city hotels and the negative impact this is having on local home stays continues unabated with little or no comment from regency and municipal government.
The resulting closure of locally owned accommodation businesses has prompted the chairman of Commission IV of the Bali House of Representatives (DPRD-Bali), Nyoman Partha (shown, to call on the government to take a firm stance protecting long-standing indigenous businesses. Commission IV of the DPRD-Bali is charge with supervision of legislative matters connected with education, health and tourism.
Partha, who hails from Gianyar, lamented that in Ubud two city hotels are already in operation with the fear that similar properties are on the way due to a lack of clear regulations and enforcement. The Legislator said the growing presence of city hotels will weaken the community-based economy of Ubud with local businesses operating tradition home stays marginalized by the activity of powerful outside investors.
"Big entrepreneurs come into the village creating cheap hotels or city hotels that have a negative impact on the existing local economy. Existing home stays find themselves unable to compete. This is because the price charged by city hotels is almost the same with that charged by home stays. This means the city hotels engage in price competition with the home stays and manage to take the market share once enjoyed by these local business," Partha complained, as quoted in The Bali Post.
Partha said the increasingly worrying situation for local accommodation providers in areas such as Ubud demands that provincial and regional government heads make regulations forbidding the development of city hotels in traditional village areas.
If that is not possible, he said, at the very least the government working through the Indonesian Hotel and Restaurant Association (PHRI) should set price standards for city hotels.
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